Ukraine, IMF agree on gas price adjustment | 2018-09-20 |

Ukraine, IMF agree on gas price adjustment

    20 September, 2018 12:00 AM printer

KIEV: The Ukrainian government and the International Monetary Fund (IMF) have reached an agreement in principle on gas price adjustment, a key element for the continuation of the aid program for Kiev, local media reported Tuesday, citing a senior Ukrainian official.

According to the Interfax-Ukraine news agency, Andriy Kobolev, the chairman of Ukraine’s state-run energy company Naftogaz, said that the agreement envisages that gas prices for consumers in Ukraine will be gradually increased to the market level by 2020, reports Xinhua.

The gas price hike is one of the main reforms Ukraine must implement for receiving the next tranche from the IMF’s 17.5-billion-U.S.-dollar bailout program.

Since 2015, the East European country has received about 8.7 billion dollars from the IMF, which helped prevent the collapse of the Ukrainian economy. The disbursement of the aid was suspended after April 2017.